Research On Small And Micro Enterprise Loans' Credit Risk Management In Wenjiang Branch Of Bank C

The report of the 19 th CPC National Congress pointed out that China's economy had been transitioning from a phase of rapid growth to a phase of high-quality development,and it was now in the critical stage of transforming the development model,optimizing the economic structure and transforming the driving force of growth.With this rapid economic change,commercial banks have been faced with massive challenges and pressure,especially on the small and micro enterprises.Small and micro enterprises are an important part of a country's economic system,with flexible management mechanism and strong market adaptability.Small and micro enterprises also contain high development potential from technological innovation,institutional innovation and management innovation.In 2013,the Third Plenary Session of the 18 th CPC Central Committee established the "Developing Inclusive Finance" as a national strategy.The "Inclusive Finance" is right focused on Small and micro enterprises,agricultural and rural areas,entrepreneurship and innovation,and poverty alleviation.Commercial banks need to put the development of the credit business of micro and small enterprises at the strategic height,whether from the angle of their own operation or following the direction of our national policy.However,the small and micro enterprises do not have optimized management and are often hard to survive long.At present,China's financial system is still in the process of continuous improvement.As the coverage of national credit reference center is not wide enough,neither credit guarantee nor credit rating for small and micro enterprises has reached a certain point of maturity,credit risk management for small and micro enterprise loans in commercial banks mainly relies on their internal methods.Based on the practice in Wenjiang Branch of Bank C since 2013,due to the high industry concentration ratio and the lack of effective measures for credit risk management and the problems in default cost setting,supervision and post-loan management mode,the asset quality of small and micro enterprise loans is far lower than the average level of Bank C.The current credit risk management system cannot meet the needs of the rapid development of small and micro enterprise loans.In order to find a way to improve the credit risk management ability of small and micro enterprise loans in Wenjiang Branch of Bank C,this paper organizes the relevant literature at home and abroad.With the analysis of non-performing loans and the current risk management methods in Wenjiang Branch of Bank C,this paper sorts out a standardized credit risk management process with comprehensive scoring based on the relationship lending theory.On the basis of paying attention to the important role of " soft" information in credit risk identification and measurement of small and micro enterprises,the comprehensive scoring is based on the criteria of " simple,accurate and objective".24 indicators(including the bank settlement account relationship of the enterprise,financial assets of the enterprise owner,cooperation with known large and medium-sized customers,credit granting of other financial institutions,operating years of the enterprise,industry classification,qualification acquisition,age,education background,,experience,marriage and assets of the owner,the spouse's job,credit information,overdue information,and salary,welfare,water,electricity and taxes payment through the bank account)are selected,which are aggregated into the basis of whether loans can be issued and how the loan amount can be matched.At the same time,in view of the existing problems in the management of bank C,the investigation and supervision on usage of the loan,checking of default cost setting and establishment of information registration and reporting system are embedded into the process.Suggestions are put forward from the aspects of customer manager management and function division of risk management department,so as to truly implement the requirements of process control and improve the credit risk management level of small and micro enterprise loans in Wenjiang Branch of Bank C.The innovation of this paper is to explore the use of "soft" information theory in commercial banks based on historical data and cases of Wenjiang Branch of Bank C,which may provide references for how to simplify and standardize the risk management of small and micro enterprise loans.